New Deal fails to secure long-term future in work for unemployed

A flagship welfare-to-work programme has been dubbed a ‘revolving door’ following a report that found nearly half of its beneficiaries became unemployed again within six months of joining the scheme.

Research conducted by the National Audit Office (NAO) found that many people who took part in the New Deal – the government programme created to support unemployed people back into work – were did not sustain employment.

Figures from The Department of Work and Pensions (DWP) for 2005-06 showed that more than 1.6 million people entered work from unemployment and almost two million entered work from economic inactivity.

However, of the 2.4 million new jobseekers allowance claims each year, around two-thirds were repeat claims, and 40% of jobseekers allowance claimants who had moved into work were found to make another claim for the allowance within six months.